· The Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched in 2015 for providing loans up to Rs. 10 lakhs to the non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY.

· These loans are given by Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks, Micro finance Institutions (MFIs) and Non-Banking Financial Company (NBFC). Under the aegis of PMMY, MUDRA has created three products, namely ‘Shishu’, ‘Kishore’ and ‘Tarun’ to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur and also provide a reference point for the next phase of graduation / growth.

· The financial limit under PMMY is as follows:

(1) Shishu: Covering loans upto Rs. 50,000/-

(2) Kishor: Covering loans above Rs. 50,000/- and upto Rs. 5 lakh

(3) Tarun: Covering loans above Rs. 5 lakh to Rs. 10 lakh